This paper studies the relationship between inflation, output, money and interest rates in the euro area, using data … power for future inflation. The real money gap contains more information about future inflation than the output gap and the … Eurosystem's money-growth indicator is an inferior indicator of future inflation …

needed to generate realistic degrees of persistence in inflation and output-gap variables. A major policy issue is whether it …

compatible with a constant inflation rate has increased substantially since 1972 in every European country. However, output gaps … percentage points, particularly in France and Germany, without causing an acceleration of inflation. (5) Some might argue that …

macroeconomic series (inflation, output, hours, interest rates, and wages), and which can be used to inform applied monetary policy …

combination of a change in the policy reaction function -- mainly toward a more aggressive response to inflation and output -- and …

rates, and the shift in the response of the term structure of interest rates to inflation and output. Although the theory …

This paper analyzes the long-run determinants of inflation differentials in a monetary union. First, we aim at …some stylized facts relating the regional dispersion in headline inflation rates in the euro area as well as in the …-traded sector as the primary cause of price and inflation differentials, with shocks to productivity in the traded sector being …